China Exchange OKCoin to Launch Bitcoin Futures Trading

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Chinese exchange OKCoin announced today it will add futures trading to its platform, saying it is one of the first major exchanges in the world to offer users the chance to trade futures denominated in bitcoin.

OKCoin’s futures trading, which will be in beta for the next two weeks before going live, partly solves bitcoin’s price volatility problem and reduces risks by allowing bitcoin earners to ‘lock in’ a future price.

More advanced traders can use futures to utilize higher leverage opportunities for price speculation. Trading of derivatives like futures also serves to move volatility away from the underlying asset and ultimately causes prices to become more predictable overall.

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